A Target investor sued the chain store on Tuesday after claiming it misled investors over risks related to its LGBTQ marketing and diversity, equity and inclusion policies.
Craig, who owns more than 200 Target shares, stated that Target cost shareholders lost billions of dollars because of its LGBT, ESG and DEI policies which led to massive backlash and ultimately, boycotts from consumers.
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The board “misrepresented its oversight because the board monitored only one side,” Craig said in the lawsuit. Target failed to “consider possible criticism from more conservative customers when rolling out ESG and DEI mandates.” Target’s market value declined $14 billion following the “Pride” collection backlash the store received as “tuck friendly” and “extra crotch” swimsuit options were offered in the girls’ clothing section, and PRIDE shirts and clothing were offered for toddlers and babies.
“As alleged in our complaint, Target failed to execute its duty to its shareholders by making statements that led them to believe that political and social risks were being assessed — when in reality, the only thing Target’s Board and Management cared about was how effectively they fulfilled the desires of various metrics advanced by leftwing ‘stakeholders,’” AFL Vice President Gene Hamilton said.
X CEO Elon Musk tweeted his predictions of class-action lawsuits appearing against Target in the near future:
Won’t be long before there are class-action lawsuits by shareholders against the company and board of directors for destruction of shareholder value
— Elon Musk (@elonmusk) June 2, 2023
“Won’t be long before there are class-action lawsuits by shareholders against the company and board of directors for destruction of shareholder value,” Musk said.
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